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Retirement investors can use tax refunds to increase their IRAs and get even more tax breaks, experts say. Other tax-advantaged strategies include using the money for home improvements that qualify for tax credits from the Energy Department, and replacing a mortgage escrow account that pays for property taxes and insurance. "The goal is not just to save it, but to make your refund pay you back," TD Ameritrade's Carrie Braxdale says.

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Investors with a strong track record have much in common. For example, they tend make "good use of tax-advantaged retirement accounts such as IRAs and 401(k)s," notes Selena Maranjian, who offers a look at some habits of successful investors.

A college savings plan that President Barack Obama proposed to limit but later backed away from, has passed the House Ways and Means Committee. In the legislation, students could pay for computers, books, tuition and other expenses, while also putting college refunds into tax-advantaged plans. Learn more at SIFMA's 529 Savings Plans Resource Center.

About two-thirds of Americans who will get a tax refund this year say they plan to save or invest at least part of the money, according to a survey by TD Ameritrade. Just 14% said they plan to use the money to splurge.

Among investors in the 21-to-34 and 35-to-50 age groups, 55% do not plan to contribute to their individual retirement accounts for the 2011 tax season, according to research by T. Rowe Price. Heavy debt was the leading factor for respondents, who said they'd rather pay down bills or save for emergencies than save for retirement. Last year, 71% of these investors made an IRA contribution. "Given their economic fears, it is understandable why many younger investors might be unable or unwilling to fund all of their tax-advantaged accounts and are focusing primarily on their 401(k) during this tax season," says T. Rowe Price financial planner Stuart Ritter.